Nigerian government set to tax bitcoin and crypto transactions

[kryptqnick]

If the bill hasn't been voted on, this might not become the law. It's also an improvement over restrictive attitude to cryptos that was around before the bill, and it can be a good move if taxes are reasonable (unfortunately, I couldn't see the details in the article). In that case, it can be considered adoption of cryptos by Nigeria. If, however, the taxes are high, to discourage the usage, then I'd answer negatively. As for helping speed up adoption, it seems that Nigerians are doing well in that regard with or without the legislation. It's more about the state catching up with its people at this point.

[1715555410]

1715555410

[Franctoshi]

How would they tax something that they don't understand?,  Taxing cryptos Is not the problem , first of all they need understand and regulate cryptos before they talk about taxing.

I wonder how they're gonna be able to get this successful when they don't have good data system for taxing their citizens.
Too a lot of people don't use their card to purchase cryptos and many would prefer using P2P transaction to try to run away from being taxed if this is in place,

[CryptSafe]

The Nigeria government we know are never tired of wanting something out of nothing. The government policies so far we have known are nothing but a cashcow memorandum. I think they delving into regulations as regards blockchain and taxation of Crypto currencies are just a way forward to control and monitor transactions. Passing or voting of bill into law makes no sense as the citizens already have their ways in doing their things. I just believe the  government are wallowing in their very own shadows trying to meet up with their citizens whom are far ahead of them. Regulations and taxation on Crypto currencies makes no difference . However be the case, it is a situation of salvaging circumstances so as not to be left behind as it is already seen that their citizens do not bother about the government actions and inactions towards their economy and blockchain to be precise.

[Leviathan.007]

As far as I know, things about the Nigerian government are not new for their people, because we all know there are many Nigerian bitcoiners, even here in this forum you can find many Nigerian people who are active and this big community of the Nigerian is also visible for their government and since their government seeks for a way to start milking money for people, now they have a new method to start taking tax for the investors and this time bitcoin investors, while I think the Nigerian people can easily bypass this by doing p2p transactions and do not let the government track their transactions.

[gabbie2010]

As far as I know, things about the Nigerian government are not new for their people, because we all know there are many Nigerian bitcoiners, even here in this forum you can find many Nigerian people who are active and this big community of the Nigerian is also visible for their government and since their government seeks for a way to start milking money for people, now they have a new method to start taking tax for the investors and this time bitcoin investors, while I think the Nigerian people can easily bypass this by doing p2p transactions and do not let the government track their transactions.

The issue at stake in Nigeria is not about the tax the government wanted to impose on crypto transactions but the ban on cryptocurrencies by the same government that directed all the banks to flagged and freeze and bank account that is linked with a crypto transactions, the government is contradicting itself with this recent anouncement, however despite that ban majority of Nigerians resorted or adopted P2P for their crypto transactions, I think the government should rescind their decision to unban the use of crypto invariably the government will generate huge amount of income via tax once the embargo on crypto is lifted.

[Wiwo]

As far as I know, things about the Nigerian government are not new for their people, because we all know there are many Nigerian bitcoiners, even here in this forum you can find many Nigerian people who are active and this big community of the Nigerian is also visible for their government and since their government seeks for a way to start milking money for people, now they have a new method to start taking tax for the investors and this time bitcoin investors, while I think the Nigerian people can easily bypass this by doing p2p transactions and do not let the government track their transactions.

The issue at stake in Nigeria is not about the tax the government wanted to impose on crypto transactions but the ban on cryptocurrencies by the same government that directed all the banks to flagged and freeze and a bank account that is linked with crypto transactions, the government is contradicting itself with this recent anouncement, however despite that ban majority of Nigerians resorted or adopted P2P for their crypto transactions, I think the government should rescind their decision to unban the use of crypto invariably the government will generate huge amount of income via tax once the embargo on crypto is lifted.

Reading the link shared in the ops, it look like another fake media propaganda and even though the video shared shows the Vice President talking about digital inclusion into the economy, it does not directly mention taxation because the Vice President is knowledgeable enough to know how impossible it is to tax cryptocurrency most especially the decentralized coins like bitcoin, the highest the government can do is to make the naira more stronger and try to tax the naira that way they could succeed since naira is centralized and under their control aside from that cryptocurrency income tax in Nigeria will be an effort in futility for the government since the decentralized transaction can not be traced or link to any individual and if Bitcoin users want to remain under the radar for long using only p2p to avoid paying tax from using centralized exchanges such as binance exchange who happen to be the tool for government cryptocurrency taxation in many countries.

[carlfebz2]

As far as I know, things about the Nigerian government are not new for their people, because we all know there are many Nigerian bitcoiners, even here in this forum you can find many Nigerian people who are active and this big community of the Nigerian is also visible for their government and since their government seeks for a way to start milking money for people, now they have a new method to start taking tax for the investors and this time bitcoin investors, while I think the Nigerian people can easily bypass this by doing p2p transactions and do not let the government track their transactions.

The issue at stake in Nigeria is not about the tax the government wanted to impose on crypto transactions but the ban on cryptocurrencies by the same government that directed all the banks to flagged and freeze and a bank account that is linked with crypto transactions, the government is contradicting itself with this recent anouncement, however despite that ban majority of Nigerians resorted or adopted P2P for their crypto transactions, I think the government should rescind their decision to unban the use of crypto invariably the government will generate huge amount of income via tax once the embargo on crypto is lifted.

Reading the link shared in the ops, it look like another fake media propaganda and even though the video shared shows the Vice President talking about digital inclusion into the economy, it does not directly mention taxation because the Vice President is knowledgeable enough to know how impossible it is to tax cryptocurrency most especially the decentralized coins like bitcoin, the highest the government can do is to make the naira more stronger and try to tax the naira that way they could succeed since naira is centralized and under their control aside from that cryptocurrency income tax in Nigeria will be an effort in futility for the government since the decentralized transaction can not be traced or link to any individual and if Bitcoin users want to remain under the radar for long using only p2p to avoid paying tax from using centralized exchanges such as binance exchange who happen to be the tool for government cryptocurrency taxation in many countries.

Come to think that lots have already tried but eventually failed on doing so in regards or in talks about taxation but it cant really be that possible.This is why they would rather putting up much more focus into those

platforms or services whom are in connected with cryptocurrencies and since these platforms could easily be hold up into their necks then this is where taxation could possibly be imposed or would be asked out.

This is why its really that impossible for government for them to get a hold of and this is why they dont really like cryptocurrency since in the first place.
There's no way that they could able to control it.

[tbct_mt2]

To be honest, I fail to understand how people want a lot.

What do they want a lot?
Get rich by cryptocurrency
Avoid tax on cryptocurrency
Bigger cryptocurrency adoption
Better regulation on cryptocurrency and better protection for cryptocurrency users, traders and investors

Tax is something neccessary to keep communities going. Many infrastructures in societies are built with money from taxation on citizens. Without tax, we will have less of neccessary infrastructures.

Not all things in societies can be built as community-led.

So please don't feel panic with tax on crypto. It is a good step to a brighter future for crypto. If governments want to tax on theur citizens, they should have more and better regulations which are good for this market.

[Jatiluhung]

I think the step taken by the Nigerian government regarding crypto taxes can be called a very wise step. because it is better to start to regulate than to prohibit. Through this tax policy, it will certainly bring more interest from citizens in the country. provided that the tax imposed should not be too high. because seeing cases of crypto taxes in Japan that are too high actually makes its citizens choose to trade crypto to be more closed. because high taxes will burden crypto users themselves. But I believe the government of Nigeria can take wise steps regarding crypto.

[Cookdata]

This is old news and for your information, Bitcoin is not banned, financial institutions were only banned from engaging in the activities of bitcoin, and the government prohibits them from going in and out of bitcoin because of the underlying corruptions within their own system. The CBN was tipped that commercial banks and some of their staff were using people's money to buy bitcoin and we all know that is against the etiquette of CBN policy for commercial banks to use customers' money for their own benefits and what is not approved by them. Bitcoin is not banned in Nigeria, please do more research on the adoption of bitcoin in Nigeria.

[Flexystar]

We are already living this sort of adoption throughout other countries. Many of them already adopted bitcoin by taking taxes on it. The thing is, it’s unclear whether they are adoptions the bitcoin or making joke out of the user considering the tac slot is anywhere in 10-30% in different countries.

That’s insane taxation on any asset we have seen. When government imposed taxes to higher slots it does mean two things either that asset is highly regulated and precious OR it’s threatening to them. You guessed it right, in our case that’s definitely second one.

Now we have to see what Nigerian bill says about it then we can conclude the intentions.

[stompix]

To be honest, I fail to understand how people want a lot.

What do they want a lot?
Get rich by cryptocurrency
Avoid tax on cryptocurrency
Bigger cryptocurrency adoption
Better regulation on cryptocurrency and better protection for cryptocurrency users, traders and investors

People want:
- the coin they hold to gain value against their national currency
- not pay any tax on it
- use it legally wherever they want
- no government should ever inquire about their coins holding nor be able to seize them
- the government should be able to refund every coin they lost to a scam
- they want the ability to ask for a chargeback but only when they are the senders
- all assets in CEX should be insured by the government like bank accounts
and so on

Or in the shot, a utopia, where only what they want happens, where they have no obligations and nobody can interfere, but at the same time when they make a mistake somebody else should be blamed! That's why no matter what any authority will do or purpose, they will find a flaw somewhere!

Oh, and I already know the outcome of this taxation law, I'm willing to bet we're going to have tens of posts on how to evade the tax once this is bill passed.

[coinerer]

This is a good development for Nigeria and the Nigerian government will be able to earn a lot of revenue through TAX collection.  Which will play many roles in the country's economy. And through the use of Bitcoin, Nigeria will be able to keep pace with a developed world.  I highly appreciate this action of the government . But the government should follow that no attempt can be made to collect excessive amount of TAX as it will increase illegal crypto users and no one will want to pay TAX easily.

[pawanjain]

The government of Nigeria is set to place bitcoin and other crypto currencies on taxation, come next year. This is part of the country's finance bill 2022 set to be approved. The country's finance minister Ahmed Zainab discussed that the taxation will help regulate digital assets and enhance e-commerce growth.

Recall that the country's apex Bank placed a ban on transactions involving crypto currencies in February 2021. The ban lead to various other banks closing or freezing the accounts of people involved in crypto. The move lead to the current government falling out with the investors in the country.

Moreover, the ban didn't stop its citizens from trading in bitcoin . This has most of the time been done through the P2P transactions on exchanges. The continuous obsession on crypto lead the incumbent vice president to the idea that the country will be better off regulating it rather than banning.

April 2022 the country's security Exchange Commission pushed towards the move to its regulation, stating that a licenced virtual assets service provider must be secured any entity that wishes to run a crypto services within the country. The country has since witness the government leaning towards crypto currency. This has been shown by their partnership with Binance exchange in September this year. It has also offered scholarships to some selected citizens to study blockchain.

My doubts over this recent moves are:

1. Does this means the government is considering the adoption of bitcoin and other crypto currencies?

2. How has the other countries placed on crypto taxation faired so far?

3. Will its regulation helps speeds up its adoption by people within the country?


Benjamindad. Com

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From the above post it looks that Nigeria is set to adopt crypto by regulating the crypto market.
Although the banks had placed a ban on crypto transactions, now that Nigeria is supporting cryptocurrencies I think the banks will uplift the ban.
Moreover regulation in cryptocurrencies will have its own pros and cons starting with infrastructure for cryptocurrencies but taxing the same.
In my country taxation of cryptocurrencies is not welcoming to the citizens because of flat 30% tax on crypto income.
Lets see how it plays out in Nigeria.

[Oneandpure]

Appreciated with Nigerian government have planning with set to tax Bitcoin and cryptocurrency transaction, actually after having tax for all cryptocurrency transaction government have regulation about Bitcoin become legal transaction payment later. I think have way without paying tax with your transaction, I did it because last several months my country have adopted with tax transaction when trading in local exchange, I used Binance support with my local currency pair, trade there and later withdrawing with local currency to local exchange market without paying fees except withdrawing only still cheap under $1.

If your local currency pair or Nigerian pair have trade at Binance you can use this way depending Binance still not required for tax from your government country.

[BlackHatCoiner]

[...]

[...]

I think you've went at the extremes. Obviously some cryptocurrency users are purely selfish, don't want regulation that affects their pocket, want their coins to rise in value, sometimes even have their national currency debased to gain capital appreciation, and the like. But, don't take it to the other extremeness, in which we should welcome more regulation (as if it isn't a bureaucratic paradise already) that is completely hostile to the cryptocurrency market, for the sake of the community.

Governments attempt to tax the citizen at the drop of a hat. Somebody designed something for ordinary citizens that's easy to avoid taxes by, and now they're sweating. Without conceiving that either of those is morally fine: Pick a side.

[tbct_mt2]

I think you've went at the extremes. Obviously some cryptocurrency users are purely selfish, don't want regulation that affects their pocket, want their coins to rise in value, sometimes even have their national currency debased to gain capital appreciation, and the like. But, don't take it to the other extremeness, in which we should welcome more regulation (as if it isn't a bureaucratic paradise already) that is completely hostile to the cryptocurrency market, for the sake of the community.

Governments attempt to tax the citizen at the drop of a hat. Somebody designed something for ordinary citizens that's easy to avoid taxes by, and now they're sweating. Without conceiving that either of those is morally fine: Pick a side.

Not extreme!

I only want to emphasize a fact about tax and growth of cryptocurrency market. We can not want one and reject the another one.

It is fair enough if cryptocurrency investors have to submit their tax report and contribute part of their earnings to government tax treasury and contribute to communities, societies they are living in.

I know governments are not perfect and they even corrupted too but without them, societies would be in mess. Democracy is a tool to control governments and their policies. In countries where there is no democracy, governments are dictators and citizens bear lot of unfairness and bad policies from governments. Their voices won't be listened by governments without democracy.

[Strongkored]

My doubts over this recent moves are:

1. Does this means the government is considering the adoption of bitcoin and other crypto currencies?

2. How has the other countries placed on crypto taxation faired so far?

3. Will its regulation helps speeds up its adoption by people within the country?

I don't think so, I think it's just a way for the government to get more tax on their funding and it's actually good for people transacting crypto because it means it's legal so there's no more fear when transacting with crypto, and you should read that clearly every law because if your country's government has taken taxes from crypto they will also provide legal certainty for fraud in crypto transactions and so you will be more comfortable doing transactions because there is legal certainty.

[pooya87]

We have to wait for the actual law to be passed and for more reliable news to come out but based on what every other country has done it always comes down to using centralization to tax people's finances. For example they could be taxing the profit people make from trading bitcoin (and shitcoins) they do on centralized exchanges whether domestic or foreign. In some cases we've seen governments attempting to create a domestic exchange just to be able to have more control and insight into what people do so that they can tax it easier.
And of course another way is to use merchants and payment processors (both are centralized) to take additional taxes.

In any case I don't think it is a big deal though since we are already paying taxes when we trade in other markets like stocks market or when we run a business and have to pay taxes on the income and more.

[stompix]

I think you've went at the extremes. Obviously some cryptocurrency users are purely selfish, don't want regulation that affects their pocket, want their coins to rise in value, sometimes even have their national currency debased to gain capital appreciation, and the like. But, don't take it to the other extremeness, in which we should welcome more regulation (as if it isn't a bureaucratic paradise already) that is completely hostile to the cryptocurrency market, for the sake of the community.

Extreme?
No, that's, unfortunately, the new reality, and with each passing week in a bear market and more and more thinking that they won't either recoup losses or in other cases finally get rich enough not to work again they re looking at every possible way for the coins to increase in price.
Do you think the majority who traded shitcoins, did bounties, and invested in every hype project really care about things like decentralization or being your own bank? No, they are after the gain in $ value, and if taxation would help them 10x in one week they will eagerly do everything possible to become true.

This is what I find quite fascinating about bitcoin, after all, bitcoin is want you want it to be, an investment, a speculative asset, a way to hide your money a way to send money, it can serve multiple purposes and with the reverse of the expression, your keys, your coins your decision to do what you want with them, one can't do anything but respect other's view, no matter how twisted it is.